No I don't do you have money in the bank

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Debts no I don't do you have money in the bank yes how much under two thousand what are your monthly expenses under six hundred dollars a month I'm assuming you're living with parents or roommates alright I'm a student gotcha how long before you graduate okay sold five thousand dollars is a really big tax refund what was your income last year under twenty three thousand yeah so why did you get such a big tax refund I'm a single parent so a lot of deductions for child care and child care credits and the like correct got it okay so what I'll give you two pieces of advice first are you might want to adjust the amount of money that is being withheld from your paychecks throughout the year because if your do you have a job right now are you do you have an income yeah okay so you might want to adjust the amount of money that's being withheld out of your paycheck so the less is being withheld because essentially what you've done is you've given the IRS an interest free loan for the year you gave them five thousand dollars more than necessary and that's why they've now just giving it back to you and it would be a lot better I would think if you had that money throughout the year instead of getting it as a lump sum of five grand at the end of the year with a pretty cool to get four hundred dollars a month every month recommend I'm sorry which I recommend I just sex thank them from claim them are just plain myself so what you want to do is go to the irises website because I. R. S. dot gov because the W. nine that is used to adjust your withholding has just been massively changed there are it's a it's a more cumbersome process than it used to be because of changes in the tax law a couple years ago and so there's a worksheet at iris dot gov that will show you how to adjust your withholding so that less money is being withheld with every paycheck this way you'll know essence give yourself a raise a pretty big one four hundred Bucks a month so yeah so that'll be really cool that's the first step that you should take the second step is to make sure that you can truly if you were to invest this money leave it alone for at least three to five years do you feel confident about that not really because urgency is always in the call and you know you need the money yes right away exactly that and I'm really glad you've acknowledged that because a lot of folks don't realize that you know life gets in the way and even though we have our desires to invest for the long term you know cars break down children get sick and have to go to the doctor you know just stuff happens in life and that's why we strongly encourage that you have lots of cash reserves you have only as you said less than two thousand dollars in cash I would like that number to be ten to twenty thousand dollars in cash so that if you had any major or financial crisis you would have the money readily available to you you see if we were to take this money and invest it there is the risk that the investments could fall in value and with your dumb luck at the very moment you need the money the money might not be there so I would encourage you to take this five thousand dollars and put it into the bank put it into a a CD where you can get close

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